The next wave of innovation for marketplace lending

Today I kicked off LendIt, online lending and fintechs’ largest conference. In its fifth year, with record-breaking attendance, the energy of the conference reflects how I feel about this industry – exciting progress and so much potential.

Historically, new technologies have been the key to unlocking new possibilities for businesses and their customers across industries. Lending Club was founded on the premise that an online credit marketplace that directly connects borrowers and investors is a more efficient and affordable way to deliver access to credit. And by democratizing this access, a marketplace would create new opportunities for both borrowers and investors, setting them on a path towards a brighter financial future.

Ten years later, this simple idea has had a profound impact on millions of Americans lives. And there’s even more potential to unleash.

The online credit marketplace is an evolving ecosystem designed to meet demand and create more opportunity. By advancing and optimizing our technology and data, we can continuously become smarter in how we help more borrowers access affordable credit and investors access an attractive asset class.

In our mission to offer more consumers more access to credit in an affordable way, we see three potential opportunities for continued evolution, found in many breakthrough industries — Evolve the Customer Experience, Unleash the Platform Potential, Amplify Core Innovations.

Let me explain.

Evolve the Customer Experience

We first introduced an enhanced customer experience to borrowers and investors ten years ago. Since then, customers have grown to expect a seamless, transparent and simple experience when applying for credit or accessing a new investment opportunity. We’re committed to building on that experience and offering more ways to introduce new products and features to borrowers and investors through our marketplace.

We envision a future where the customer experience is even more frictionless and simple. A future with native secondary markets powered by blockchain ledgers that could increase access to liquidity for investors. Building in dynamic pricing adjustments could allow even more efficient matchmaking between borrowers and investors. How could we incorporate machine learning to help the marketplace make smarter and faster decisions during the verification process and truly make loans just one-click away?

Unleash Platform Potential

Imagine the possibilities if we were to open our platform to incorporate products and services beyond just credit and investing – even those not offered directly from Lending Club. New products and investment structures could help a new wave of investors access our products and broaden their investment strategy, while providing borrowers the benefit from more financial services at affordable rates.

Amplify Core Innovations

Partnerships are nothing new in our industry. We think there’s even more opportunity to connect the core capabilities we’ve mastered with other businesses. Sharing our expertise can help drive more industries to deliver great value to consumers. Beyond partnering, we could even make businesses out of our key skills. First, it starts with building a capability. Next, we offer a capability to others who can’t create the capability themselves through our platform. Finally, we sell this capability from our platform so others can reap the benefits for their businesses.

Our marketplace has become a strong ecosystem of businesses that are delivering great value to borrowers and investors. We’ve only just started to unlock the possibility. What’s most exciting about where we are today is how much value we still have to unlock. The next wave of innovation is coming and the next decade is going to be full of exciting developments and new opportunity for everyone in the marketplace. I look forward to welcoming more borrowers, investors and partners to be a part of it.

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Your actual rate depends upon credit score, loan amount, loan term, credit usage and credit history. APR ranges from 6.95% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6%; the average origination fee is 5.2% (as of 12/5/18 YTD). There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans through LendingClub have a minimum repayment term of 36 months or longer.

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